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1. Consider the following model of a hypothetical market for MSW management services:
MPB = 25 − 2Q
MPC = 4 + Q
MEC = 0.5Q,
where Q is the number of trash containers per household per month.
A. Quantitatively determine the effect of the resource misallocation due to: (12 marks)
a. the presence of the negative externality, and
b. the use of a flat fee pricing system in the presence of a negative externality.
B. Determine the dollar value of a waste-end charge that would restore efficiency to this market. Explain your answer intuitively. (3 marks)
If the consumption function is reading as C=290+0.9Y. Therefore the savings function will read as
Show the effect of stringent anti-trust legislation and higher employment
protection on natural employment through price and wage setting curves? How the
natural employment changes when Oil Price increase (add the explanation through
IS-LM-AD-AS framework.)?
Using IS-LM concept, show and explain the net effect of an increase in corporate
tax and increase in consumer confidence on equilibrium output and interest rate?
How does earlier effect changes if there is a slight positive relationship between
money supply and interest rate
Consider the following information:
Marginal propensity to consume = 0,9
Investment = R180 million
Autonomous consumption = R105 million. The equilibrium level of income is:-
Question 2 options:
The monthly demand for ice cans being manufactured by Mr. Alarde is 3200 pieces. With a manual operated guillotine, the unit cuffing cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Alarde at a price of P275,000.00 and which cuts by 30% the unit cuffing cost. Disregarding the cost of money, how many months will Mr. Alarde be able to recover the cost of the machine if he decides to buy now?
Consider the following information:
Marginal propensity to consume = 0,9
Investment = R180 million
Autonomous consumption = R105 million. The equilibrium level of income is:-
Question 2 options:
1800 million.
2800 million.
0,9Y.
2850 million
1. Consider the following model of a hypothetical market for MSW management services:
MPB = 25 − 2Q
MPC = 4 + Q
MEC = 0.5Q,
where Q is the number of trash containers per household per month.
A. Quantitatively determine the effect of the resource misallocation due to: (12 marks)
a. the presence of the negative externality, and
b. the use of a flat fee pricing system in the presence of a negative externality.
Determine the dollar value of a waste-end charge that would restore efficiency to this market. Explain your answer intuitively.
1. Consider the following model of a hypothetical market for MSW management services:
MPB = 18.35 − 2Q
MPC = 2 + Q
MEC = 0.25Q,
where Q is the number of trash containers per household per month.
A. Quantitatively determine the effect of the resource misallocation due to:
i. the presence of the negative externality, and
ii. the use of a flat fee pricing system in the presence of a negative externality.
B. Determine the dollar value of a waste-end charge that would restore efficiency to this market. Explain your answer intuitively.
A machine with a cost of 200000$ will soon need to be replaced a similar machine that will cost 300000$,
A. What amount should the machine presently owned be reported on the balance sheet?
B. What amount should management use in planning for the cash required replacing machine?
